Iraq Approves $100.5bn Budget for 2012

After months of  wrangling, the Iraqi House of Representatives has finally approved the $100.5 billion budget for 2012, according to AKnews.

The budget is based on an average oil price of $85 per barrel and 2.6m barrels per day in crude oil exports, up from last year's budget of $82.6b, which was based on an oil price of $76.50 per barrel and 2.2mb bpd in exports.

It includes a projected deficit of $12.6 billion, the bulk of which will be covered by a surplus in the Development Fund of Iraq (DFI) account at the New York Federal Reserve, reports Reuters.

Some $31.7 billion is allocated for investment projects and the reminder goes to covering salaries and food ration item.

17 trillion dinars ($14.6 billion) goes to the country's security forces.

Please click here to read Reidar Visser's analysis of the budget.

(Sources: AKnews, Reuters)

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